For investors, the benefits of fund dividends outweigh the disadvantages, so everyone is looking forward to dividends, and they are particularly excited to participate in dividends for the first time. I want to know how to divide the fund dividends, according to the shares held or according to the funds held.

Is the fund dividend divided by share or by capital?

Fund dividends are determined according to the holding shares. For example, for every 10 dividend in 0.2 yuan, if you hold 1000 shares, you can be assigned to 200 yuan. At present, there are two ways of fund dividend, namely cash dividend and dividend reinvestment.

Among them, dividend reinvestment is the default dividend method of the money fund, and the dividend funds are directly used to increase the holding share; Cash dividend is the default dividend method for non-monetary funds, and the dividend funds will be allocated to investors' current accounts or bank accounts.

The difference between the two dividend methods is that, first of all, the cost is different. After choosing the cash dividend, the reinvestment needs to pay the subscription fee, while the dividend reinvestment generally does not charge the subscription fee; Second, the risks are different. Cash dividend means that it is safe to save money, and choosing dividend for reinvestment needs to bear the risk of fund loss.

After reading the above introduction, I believe everyone has a clearer understanding of whether the fund dividends are divided by shares or by capital. After the fund pays dividends, the accumulated income and total assets held by investors will not change, but the net value will change.